1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreyandreev [35.5K]
3 years ago
10

When valuing a stock using the constant-growth model, d1 represents the?

Business
1 answer:
Minchanka [31]3 years ago
3 0

When valuing a stock using the constant-growth model, D1 represents the next expected annual dividend. The constant-growth model is formally known as the Gordon Growth Model. This model shows the intrinsic value of stock based on dividends in the future if they are growing at a constant rate. Instrinsic value is the value of something based on anaylsis without accounting for the market value.

You might be interested in
Skysong Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a c
Bezzdna [24]

Answer:

Explanation:

The question is asking fro the Reporting of the two copyrights in Skysong's balance sheet as at December 31,2020

Assumption: The first copyright was developed internally while the second copyright was purchased from the University Press

<u>Based on this assumption, therefore, </u>

For Copyright one: Since it was developed internally, it will not reflect in the balance sheet, it will not be recognized as an asset because it does not have any separate legal rights different from the organisation that developed it. As such it will be recorded in the Income statement as an expense

For Copyright two: This is an intangible asset with an indefinite number of useful life. Hence, $32,000 will be reported in the balance sheet as an intangible asset but the cost will only be tested for impairment and not amortized.

3 0
3 years ago
____ cards contain a chip that can store a large amount of information as well as on a magnetic stripe for backward compatibilit
trasher [3.6K]

Answer:

(B)

Explanation:

Europay, Mastercard , Visa (EMV) is a payment method based upon technical standard for smart card payments or ATMs that accept them.

These are smart cards (also referred to as chip cards) that are capable of storing large amount of information and also include a magnetic stripe at the back for backward compatibility.

Smart cards can serve as credit or ATM cards, fuel cards, mobile phone SIMs  etc. Smart card chip can be loaded with funds and can be used for paying parking meters, vending machines or merchants.

4 0
3 years ago
What determines the color or a translucent object
Lady bird [3.3K]
It's somewhat see through
5 0
3 years ago
Read 2 more answers
Can you think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life
guapka [62]

Answer:

Multiple IRRs:

Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).

Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.

Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.

<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>

Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.

Period                                             0          1       3  3 4 5

Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000

The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.  

Cheers!

5 0
3 years ago
Sara shouppe has invested $100,000 in an account at her local bank. the bank will pay her a constant amount each year for 6 year
katovenus [111]
We can compute this using the Annual depreciation charge
Use the formula:
depreciationcharge= (Co-Cn)i/[(1+i)^n-1)]
where
Co= initial amount= $100,000
Cn- value after n years= $0
n= life of account= 6
i= interest rate=10%
Sunstituting all the values, we will get,
depreciation charge = $12960.74

The bank will have to pay Sara shouppe  $12960.74 for the investment of $100000 with 10% interest.


5 0
3 years ago
Other questions:
  • Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 201
    11·1 answer
  • Which of the following, indicate whether each statement about regional trade agreements is true or false. Statement True False
    15·1 answer
  • In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price
    5·1 answer
  • When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that ap
    12·1 answer
  • The price paid by buyers in a market will decrease if the government a. increases a binding price floor in that market. b. incre
    12·1 answer
  • S10-5 (book/static) On February 28​, 2017​, Rural Tech Support purchased a copy machine for $ 53 comma 400. Rural Tech Support e
    12·1 answer
  • Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower
    7·1 answer
  • While doing an online search for a music venue, Darcy ran across a performance of Lady Gaga that featured her hair neatly wrappe
    13·1 answer
  • Giving customers time to pay their bill generates more sales. But when a recession hits, they may have trouble making payments.
    10·1 answer
  • Question below:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!